G R Infraprojects (GRINFRA) Q2 24/25 earnings summary

Executive summary

• Revenue performance in Q2 FY25 varied, with some reports showing a decline to INR 1,128 crores due to execution delays, while others noted a 37.19% year-over-year increase to Rs 20,047 Mn, reflecting mixed operational outcomes.

• EBITDA margin for the quarter ranged from 10.38% to 10.39%, lower than the previous year, while gross margin improved to 26% year-over-year.

• PAT margin showed mixed trends, with some reports noting a decrease to INR 114.82 crores, while others reported an improvement to 10.32% in Q2 FY25.

• Robust order book as of September 2024, with values reported up to Rs 1,46,405 Mn and potential to reach Rs 1,96,409 Mn with new project wins.

• Expansion into power transmission through acquisitions and new project wins, including the acquisition of Bijapur REZ Transmission Limited.

Financial highlights

• Standalone revenue dropped by INR 446 crores year-over-year in some reports, while consolidated revenue for Q2 FY25 reached Rs 20,513 Mn.

• Group-level EBITDA margin increased to 25.32% in some reports, while standalone EBITDA margin was 10.38% in Q2 FY25.

• Exceptional gains from asset sales, including Rs 305.17 Mn (net of tax) and INR 35.6 crores from HAM project sales.

• Standalone net worth ranged from INR 7,466.75 crores to ₹7,40,081.61 lakhs as of September 2024.

• Standalone borrowing at INR 689 crores; consolidated borrowing at INR 4,301 crores.

Outlook and guidance

• FY25 revenue expected to decline by 5-10% in some reports, with double-digit growth targeted for FY26, supported by a strong order pipeline and asset monetization.

• Margin guidance for FY25 is 12-13%, with a return to 14-15% expected in FY26 as capacity utilization improves.

• Order inflow target for FY25 is INR 20,000 crores, with INR 5,000 crores already received and INR 15,000 crores expected in H2.

• Strategic acquisitions in power transmission expected to drive future growth.